Calculate Social Security taxes, Medicare taxes, and FIT for Joy Royce. Joy's company pays her a monthly salary of $9,500. She is single and claims 1 deduction. Before this payroll, Joy's cumulative earnings were $115,000. (Social Security maximum is 6.2% on $118,500, and Medicare is 1.45%.) Calculate FIT by the percentage method.
Jim Brewer, owner of Arrow Company, has three employees who earn $300, $700, and $900 a week. Assume a state SUTA rate of 5.1%. What will Jim pay for state and federal unemployment taxes for the first quarter?